Intelsat Acquisition Of Panamsat Draws Mixed Reaction From Government Sector Observers.

Publication: Government Procurement Report

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Opinions differ on what the impact of the Intelsat acquisition of Panamsat will be on the government services market. Some observers expect little to change, but at least one industry source sees a significant red flag and things the government should halt the transaction.

One argument against the merger has to do with pricing, with arguments swirling that the merged entity would result in higher prices for the government on the spot market.

"I think it is very bad for the U.S. government to have such a large percentage of their traffic concentrated in one carrier," an industry source told Satellite News' Government Procurement Report on the condition of anonymity. "That carrier winds up dictating the pricing and setting...

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